Capstone Simulation
Introduction
Capstone is a business simulation designed to teach strategy, competitive analysis, finance, cross-functional alignment, and the selection of tactics to build a successful and focused company. In each round, we have to meet the buying criteria for our customers in each segment. We have five different products: Traditional Segment, Low-End Segment, High-End Segment, Performance Segment, and Size Segment. Each round is a year in the company’s life and decisions are made in research and development, production, marketing and finance. Critical thinking is a vital step in making decisions as to how each round will be implemented. Capstone provides us with an opportunity to run a virtual business risk-free.
Along with the business …show more content…
We met every Monday and Wednesday morning. We each had a specific area that we specialized in but the final decisions were always made as a team. The collaboration of having all of the different ideas from different point of views to make the decision benefited us greatly. We started off being very guarded towards one another but by the end that all went away and we each let it known what we wanted done. Team Andrews was composed of both introverts and extroverts which created a well balanced team. We had some people that were ready and willing to take the most risks and then we had people that were more cautious. So compromise was key to the success of our team's prosperity. We went in head first with our strategy and never looked back. If we were working in the real world as a group, we think that we would be successful as …show more content…
The market share domination starts in year 2 with a 25 percent market share, followed by $1.2 million dollar profit between Adam and Ace. We split marketing and promotion costs between the two products; however, our marketing costs were still budgeted too low between the products. We still had low customer awareness when compared to our competitors, but our customer accessibility had a great in percentage increase by splitting costs in promotion. Adam’s price got adjusted to the highest end of the price range so we could sell out of our remaining inventory, and we did not produce as much to compensate for left over inventory. We expected our profits would be low this round; however, we knew they would increase as the rounds
Capstone is a business simulation designed to teach strategy, competitive analysis, finance, cross-functional alignment, and the selection of tactics to build a successful and focused company. In each round, we have to meet the buying criteria for our customers in each segment. We have five different products: Traditional Segment, Low-End Segment, High-End Segment, Performance Segment, and Size Segment. Each round is a year in the company’s life and decisions are made in research and development, production, marketing and finance. Critical thinking is a vital step in making decisions as to how each round will be implemented. Capstone provides us with an opportunity to run a virtual business risk-free.
Along with the business …show more content…
We met every Monday and Wednesday morning. We each had a specific area that we specialized in but the final decisions were always made as a team. The collaboration of having all of the different ideas from different point of views to make the decision benefited us greatly. We started off being very guarded towards one another but by the end that all went away and we each let it known what we wanted done. Team Andrews was composed of both introverts and extroverts which created a well balanced team. We had some people that were ready and willing to take the most risks and then we had people that were more cautious. So compromise was key to the success of our team's prosperity. We went in head first with our strategy and never looked back. If we were working in the real world as a group, we think that we would be successful as …show more content…
The market share domination starts in year 2 with a 25 percent market share, followed by $1.2 million dollar profit between Adam and Ace. We split marketing and promotion costs between the two products; however, our marketing costs were still budgeted too low between the products. We still had low customer awareness when compared to our competitors, but our customer accessibility had a great in percentage increase by splitting costs in promotion. Adam’s price got adjusted to the highest end of the price range so we could sell out of our remaining inventory, and we did not produce as much to compensate for left over inventory. We expected our profits would be low this round; however, we knew they would increase as the rounds